Commercial instrument.



N0; 894,6 63.' PATENTED JULY 28, 1908. I KIMBER.

COMMERCIAL INSTRUMENT.

APPLICATION FILED JAN. 16, 1905.

z SHEETS-SHEET 1.

THIS IS TO CERT/FY THfiT'THERE l5 DEPOS/TED IN THE FITTFICH HERE FRHCTIONHL COLLHTERHL SECURITIES- HELD IN IOCENTS 0R OVER NEW YORK EXCH'HNGE FICCOUNT 'Ffi) T0 TH ORDER OF THE (4/00H5ER OR I HTT H c H H I v //VDOF?6EE FOR VfiL l/E f-FEOE/ v50 I TRUST TO GUHRFINTEE PAYMENT OF THIS DRFIFT v I I I I I I I CHECKS l I I I I l I I RELIANCE TRUST co OF NEW YORK NEW YORK EXCHANGE TWENTY DOLLARS RELIHNCE TRUST co OF NEW YORK SIGNHTURE OF DEPOSITOR OR ORDER THIS MUST B SIGNEI BY DEPOSITOR ambcmtoz iwi Inca a v I V T k Emrrzorlfz'rraew,

I v A [1 WWW 4 FBHGTIONFII. I TWENTY DOLLARS UNDER 14 COUPON flTTfiCH/ViE/VT IO CENTS I fiwmfi 622 (I TO THE I V I E. KIMBBR. COMMERCIAL INSTRUMENT.

APPLICATION FILED JAN.16. 1906 PATENFED JULY 28, 1908.

2 SHEETS-SHEET 2.

llliiuwm BejlnNq ui 5e r:.. I

wi bnma 7 "3140044 607, EWILOFEZIYZZGVT a 5 www,

Wow?

'LEMQ :K MsE irn isse rm MA SAQHUS' TI 1 I strument/s and is primarilyv designed'as, a

Tb whom i y -catml-fi I zen of the United States;residin'g at Dorehester, in the county "ofisufiolkfand State of,

Massachusetts, have "invented certain new and usefullmprovements in Commercial 111- struments; and I do hereby declare the following to be a full, clear 'and exact descri 7 tion of the invention, such aslwill' enab e, others skilled. in the arti-towhiehit appertainstomakeand-usegthe same. This invention relates to commercial intangible medium to be used with a system of banking, wherein; 'a 'depo'sitor is enabled to draw tothe-extentfof his deposit in differ:

ent localities without the necessity'of other,

means of identification than'shown on'the instrument.

In systems of character it is essential 7 *that the depositor be] roteeted against loss in the valuation. of t e-instrument issued in-lieu of his depositand this irrespective of the solidity of the bank wherein he has de osited. i

or the purpose of more dearly-under-v standing the appllication of the present ina system of this character mightvbe briefly referred to as follows :Every bank eonstt vention with'suc a system the operation of tuting a link in the system before securing an issue of the eommercial -paper must'deeach instrument; The issuaneeoffthisguarthat there i anteedpappr by the .banksindieates also as been deposited ina bank the amount of that speeifie-instrumentand hence it becomes a certificate .ofde'posit'and in effeet a portion of afnegotiable instrument, if

. as; in the present -instanee, the instrument contalns Words of negotlablhty' as a' check or draft. r

tion therefore-is to combine in one ne otiable instrument a certifieateof de osit o eollat-.

' whic feral securities guaranteeing t e payment of a ne otiable order thereon, the issuanceofj acts as a certificate-of deposit of cash to thedepositor." u

Another object-of the invention isto provide means ,whereb a fractional part ofthe normal face alue oi such an instrument'ma be incorporated and made a part of the I l P'G WR IA ma r I I S 1ieeifieation 01 Letters rathti kipiaiipat ioii;file-i1"Jan ar 16, 1906/ Seriailio'. 298,414.

anteed, as aforesaid, by-eollateral'securities;

: Another object is. to I-provideready means for checking up the aid-instruments when returned to the exe angezs'ystem or com-fpany. While the invention is not restricted to theexaet details as disclosed;-;still.in the ad eompan g drawings. there is illustrated a practiea embodiment of-theinvention, the

particularfeatures ofinovelty of which are more succinctly stated in the elaims;

Referring to the drawings-:'.,Fig'ure 1 rep-"- resents a face view of'the piece of commercialpaper or instrument in itsnormal form: of issuance. Fig. 2 represents a fragmem tary viewshowing the back of the paper when signed up fornegotiation. Fi 3 represents a view, showing a plurality 0 coupons representing a fractional amount-of the main 111- strument and when appliedrheretoforming a part-of the instrument and representing a 1 portion of thefull face'value thereof.

I 1 designates the main-body portion of-the improved piece of commercial paper or inv strument, and 2 a marginal portion Tthereon'.

adapted to receive one or more checks 'aor coupons-adapted to be seeuredthereon and when so secured forming a part of the instrument-andrepresenting a portion of the full face value thereof.- v

'Inthe drawings the head of ment is shown as containing the words New York Exchange Twenty Dollars", although this is not an essential part of the paper, and it also be understood of'cou'rse that the the instruwording hereinafter referred to might be modified as toiform. 1' For the purpose of illust'ration, however, the upper portion of the main body portion 1 of t e instrument" contains acertifieate 3 to the effect that there" has been deposited in an-institution eollat eral securities held in trust to" guarantee payment of the-instrument of which it forms a y w part; This certificate is signed bythe insti- One of the principal objects of the inyen-' tution, asindieated, and forms'a' part of the instrument,

negotiable order 4 drawn on the institution (illustrated in-the drawings as the Reliance Trust Co. of New York) orany bankhaving cured by; the-collateral. securities held in .trust by .the institution; This negotiable theaccount, payable from the account se- 3 orderis in the form of a check or draft for a specified amount, and a'fractionalpart of:

that amount as shown by a 001i on or coupons which when applied to the raft form a part thereof. The-maker of this check is the company, (designated in the drawings as the Favorite Exchange System) operating the. system.

At the right upper end of the ortion 1 of the instrument there appear lanks for the serial number of-same.

On the marginal portion 2 of the instru-i ment there may be printed thewords Attachhere fractional checks 10 cents "or. over and Attach here fractional checks under 10 cents xf- 3 ,f

on the. rear of the instrument .is arranged a space ,5 'for'the signature-0t the depositor "when he'firstreceives the paper, whichs'pace' has, the-caption Signature? of dep ositor. Below this 'is arranged: the nego .tiation phrase Pay to the order ofif with azbl anlc'f space 6 to indicate. thejindors'ee and a blank In Fig. 3'there is .'sliowna plurality a ta -x pons 8 designatinga fractionalpart of any predetermined amount, whichhoupons-may' be serially. numbered'asfiat 8 and provided With watermarks-(S but this "particular marking formsgn'o' 'partof the present inven- .tion .While these-'gcoupjons are primarily adapted for use as sjm'all change and ther'e fore are issued as fractionalfparts of a dollar, itwilll he' understooil that in carrying out-the inventionl donotji mitmyself to" utilizi-ng a fractional part of a fd'ollan-asj.the"coupons 1 might Well beiof a one dollar jor two dollardenomination orin fact any fratji'onal part of the main bodyof the instrument. 40

l'ractional part thereof as shown by.coupon attachment.. This would limit the amount i avoided by the particular reading (if the draft issued-by the exchange system;

It-will be seen from. the foregoing that :when the banks'for'mlng a linkjof the system receive thecommercial-paperin theforrn of; guaranteed instruments, theyhav'eto depositcollateral-securities' held in trust by them- .stitutionto guarantee the payment of the paper'received by them. The banks in issu i 1mg this papergive it outto. thedepo'sitor in" a plurality of main instruments and fractional coupons, the aggregate total."

' of'which is equal to the amount {deposited withf the bank, Upon the".issuance.(lf'lthig paper by the bank to theidepositorg'he should a sign hisname on the backin the spacein'dicated at 5 to-prevent'another from using the the formo him as the depositor and order p p catedat 6,'Whereupon the instrumentmay I creases normal face value stantially as described.

aper in case. ofl'oss, as if the blank space 5 is If led'epos'itor .is irra foreign locality,

, upon presentationlof the paper either with or without coupons'attache v to any bank having the; account, and signing in the space indicated at 7 his last si nature will identify the amount of the paid, or ifhe wishesto negotiate the 1e may simply indorse it over, as in dibe passed as an ordinary form of check.

The utility of-this invention willbe ap m i ent to one acquaintedwithbankingprob ems, but its manyadvantages for use n "banking systems will not be'lurth'er. referred" to, form,- inggnopart-j'of thedescription of the" in'vom .t1o'n )ro err},

A-comniercial instrument having-a norface; and-having means for" attaching,- it to fsard nstrumenafsaid instrument. containing matter wherebys delern'en't, when attached thereto, increases the" n-orma] 'face value of said instrument, substantially asdes'cribedl 23A commercial" instrument comprising an order for the payment'of money, containe 2m matter rendering it negotiable, and also a certificateof deposit of'collateral securities with .ja central-institution to guarantee the payment; of saidorder, in combinationwith a ,Is'eparate element'having' a-specific-value indic-atechon its face, and havmgmeansjfo'r attaching it to; said, instrument, 1 said instru- 4 ment containing matter 'whereby said ele- Asshown in the drawingalreferring to Fig.)- l the draftcalls' for,Twenty dollars and a ment','when attached; to said instrument, in-

thereof, subi 3;. A commercial instrument comprising a'n'order-for the payment of money containing matterrenderingit negotiable, and a cer -ti centralinstitutmn to guarantee the paymerit-"of said order, 1n combjm'ation with a cate of deposit of collateral securitieswith separate element having a specific value 1ndicated on its face and having'means for attaching it to said instrument, said instru -.ment containing matter whereby said elem'ent, when attached thereto, increases the normal face .value of said mstrumentand 1s guaranteed by said certificate, substantially as described.

In testimony whereof, I afiix my signature, in presence of two witnesses.

h EMMOR KIMBER. Witnesses:

- R. F. FULLER, "8011 1 13012. 

